By giving to a charity, a Georgia resident can feel like they’re giving back to the community they love. While some donate every year or work as volunteers, others make their biggest contributions at the time of their passing. A solid estate plan can help ensure a healthy chunk of change goes to an important charity
An estate plan allows one to dedicate a certain sum of money that is to be given to the cause of their choosing once they die. Donating in such a manner may seem complicated at first considering all the relevant tax laws and attorney fees. However, estate plans give people various options to choose from.
For starters, an estate owner can specify in their will how much they would like to give to charity. In addition to being a good deed, this will actually reduce their estate tax liabilities. Alternatively, people can donate their retirement accounts. This is done by designating a certain charity as the beneficiary of an account. Since charities don’t have to pay either income or estate taxes, the organization will receive the full value of the retirement account. Furthermore, an estate owner may choose to donate through a charitable trust. This can be used to give to charities while still controlling the assets in the trust.
Someone who decides to donate money through an estate plan should be aware of the options available to them. This is where an experienced lawyer comes in. Legal counsel could explain the process and help a client select an option that will satisfy their needs.